As mentioned before, international businesses are exposed to different cultures and often times need to adapt their practices to fare best in that particular culture. For the purposes of this report the operations of the New Zealand multinational dairy company Fonterra will be analyzed in two countries, China and Malaysia. The analysis will relate the differences in Fonterra’s operations in those countries back to Trompenaars’ theory of culture.
First follows a brief background of Fonterra. Fonterra is the world’s leading exporter of dairy products, exporting to over 140 countries and accounting for roughly 30% of the world’s dairy exports (Rabobank, 2015). Fonterra is a co-operative, owned by around 10,500 New Zealand farmers. In total Fonterra …show more content…
Both China and Malaysia are characterized by a particularistic culture. Relationships are more important than rules in these cultures, and inequality between groups is more obvious. Also, China and Malaysia both accord more importance to the collective than to individuals; common goals are more important in these societies. With respect to the third dimension of Trompenaars’ theory, Chinese people tend to be more neutral in showing their emotions than Malaysians, who are more affective. That is, Malaysian people tend to show their emotions more openly. Furthermore, China has a comparatively more diffuse culture than Malaysia. So in China the process is more important and the degree of involvement in others in dimensions of personal life is greater than in Malaysia. And lastly, both in Chinese and in Malaysian culture status is accorded to people based on their personal characteristics, such as their position or …show more content…
Due to growing demand from Chinese customers for fresh milk, Fonterra built its first farming hub in China in 2007. Now they have another farming hub in China, and more on the way (Fonterra, n.d.). Moreover, Fonterra announced in 2014 that it would start a joint-venture with Beingmate, a Chinese infant food manufacturer. This would help Fonterra have an integrated business in China, thereby strengthening their place in the local market through local commitment. Products of Fonterra that have a strong market presence in China are high value nutritional powders for bone health and mother and child nutrition (New Zealand China Trade Association, n.d.). Especially the infant formula is important to Fonterra, the formula being the fastest growing dairy category in the world. Besides, due to scandals in the past, the promise of safe and high quality dairy products is highly important to the Chinese government and the local people (“Moving on from Milk Scandal”,
First follows a brief background of Fonterra. Fonterra is the world’s leading exporter of dairy products, exporting to over 140 countries and accounting for roughly 30% of the world’s dairy exports (Rabobank, 2015). Fonterra is a co-operative, owned by around 10,500 New Zealand farmers. In total Fonterra …show more content…
Both China and Malaysia are characterized by a particularistic culture. Relationships are more important than rules in these cultures, and inequality between groups is more obvious. Also, China and Malaysia both accord more importance to the collective than to individuals; common goals are more important in these societies. With respect to the third dimension of Trompenaars’ theory, Chinese people tend to be more neutral in showing their emotions than Malaysians, who are more affective. That is, Malaysian people tend to show their emotions more openly. Furthermore, China has a comparatively more diffuse culture than Malaysia. So in China the process is more important and the degree of involvement in others in dimensions of personal life is greater than in Malaysia. And lastly, both in Chinese and in Malaysian culture status is accorded to people based on their personal characteristics, such as their position or …show more content…
Due to growing demand from Chinese customers for fresh milk, Fonterra built its first farming hub in China in 2007. Now they have another farming hub in China, and more on the way (Fonterra, n.d.). Moreover, Fonterra announced in 2014 that it would start a joint-venture with Beingmate, a Chinese infant food manufacturer. This would help Fonterra have an integrated business in China, thereby strengthening their place in the local market through local commitment. Products of Fonterra that have a strong market presence in China are high value nutritional powders for bone health and mother and child nutrition (New Zealand China Trade Association, n.d.). Especially the infant formula is important to Fonterra, the formula being the fastest growing dairy category in the world. Besides, due to scandals in the past, the promise of safe and high quality dairy products is highly important to the Chinese government and the local people (“Moving on from Milk Scandal”,